lossyWAV is a near lossless audio processor which dynamically reduces the bitdepth of the signal on a block-by-block basis. Bitdepth reduction adds noise to the processed output. The added noise is adaptively shaped by default and can alternatively be fixed noise shaped or white noise depending on command line parameters. When lossyWAV processed output is compressed with certain lossless codecs (FLAC, Wavpack, Tak, LPAC, MPEG-4 ALS and WMA-Lossless) the bitrate of the output file is significantly* reduced compared to the lossless original.

Thanks for taking the time to provide me with the sample. Below are a sox spectrogram of the lossless original and the post-analysis frequency "plots" (short and long) contained in the lossyWAV.log file. From these it can be seen that there is next to no signal above bins 24 of 32 and 178 of 512 (c. 16.5kHz and 15.5kHz respectively). This explains why you were getting no reduction in size - no bits were being removed due to no signal at the high end of the calculation range (varies upwards with quality setting from about 15.3kHz). As you can see, I have used --limit 14000 for this processing - the resultant lossy.flac file is 196MiB (315 kbit/s), the lwcdf.flac file is 260MiB.

So, yes this is a sample that will not benefit from lossyWAV processing using default settings. However, simply setting the upper calculation frequency limit to below the lowpass that seems to have been applied to the sample fixes this. It almost looks as is this sample has been resampled from 32kHz (NICAM frequency?).